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Euromonitor International is pleased to announce that the 2013 edition of Retailing research is now published. The system offers an unparalleled look at the retail landscape across 80 research markets, in 33 channels and 53 product categories with over 5000 retailers present in 2012 of which more than 600 generated sales of over one billion dollars.
Overall retail growth for 2012 remained very robust at 6%, at fixed exchange rates. In fact, retailing growth is better than in any previous year since 1999. This strong growth is despite the ongoing economic weakness in many Western markets; this has even helped apparent growth. While growth in emerging markets is on the back of expanding retail networks, with more store openings and higher consumer spending, growth in the West is masked by higher inflation, which is pushing nominal sales.
Western Europe is the main “beneficiary” of higher price inflation. In nominal terms, the region seems little affected by the ongoing Euro crisis, growing by 1%. But in real terms, Western Europe was the only region to show decline, at 1%. Other developed markets were also affected but to a lesser degree; in real terms, sales growth in Australia and North America was virtually static.
In 2012, Middle East and Africa surpassed Latin America to become the fastest growing region, increasing by 14%. Rapid growth stems from the high number of new store openings; the total number of outlets increased by 2% – the highest of any region.
The Chinese slowdown has long been speculated and expected. In 2012, retail growth at 13% is slightly below the 14% of the previous year. Yet, in real terms, 2012 growth is expected to actually increase to 10%, and maintain a healthy CAGR 9% over the next five years.
Company rankings, which were static for a number of years, changed in 2012 with Seven and I Holding (best known with its 7-Eleven convenience stores) jumping to number two, while the European leading retailer Carrefour moved down a rank. Tesco, which was ranked slightly above Seven and I at number three, is now firmly ranked fourth due to lower sales and unfavourable exchange rates. With more beneficial exchange rates, other US retailers such as Costco and Target have moved up the ranks as well, while the leading internet retailer Amazon has reached the top 15 for the first time.
Internet retailing remains the fastest growing channel, not just on a global level but in almost every country. In 2012, sales through this channel increased by 20%, and now account for 4% of all retail sales globally. This share is expected to rise beyond 6% by 2017.
For the first time Euromonitor International has included eBay business to consumer sales of the company within internet retailing and broken the company in key markets it operates.
Jewellery continues to be the fastest growing non-grocery channel in 2012, as demand for jewellery and luxury products is still strong in Asia Pacific, which accounts for 42% of all specialist jewellery channel sales.
These and additional topics will be reviewed in more detail over the coming weeks.
The annual industry update includes the following:
Country reports will be published on a rolling basis from January onwards, with analysis continuing to provide insight into the latest industry trends. Global report analysis will begin publishing for these categories on a rolling basis from November as well, giving a truly global perspective on the latest industry-specific trends and other external forces shaping the marketplace. Global company profiles covering the leading store and non-store based retailers will start rolling out in January.